K. G. FOUNDATIONS (P) LTD. Vs. V. GNANASAMBANDAM

JUDGEMENT

(1.) Challenging the order passed by the Tamil Nadu Real Estate Appellate Tribunal, Chennai in Appeal No.7 of 2022, the appellant before the Tribunal has filed the above Civil Miscellaneous Second Appeal.

(2.) By the order impugned in the appeal, the Tribunal dismissed the appeal for non-compliance of Sec. 43(5) of the Real Estate (Regulation and Development) Act, 2016. As per the provision of Sec. 43(5), where a promoter files an appeal with the Appellate Tribunal, it shall not be entertained, without the promoter first having deposited with the Appellate Tribunal at least 30% of the penalty, or such higher percentage as may be determined by the Appellate Tribunal, or the total amount to be paid to the allottee including interest and compensation imposed on him, if any, or with both, as the case may be, before the said appeal is heard.

(3.) In the Judgment reported in 2021 SCC Online SC 1044 [M/s. Newtech Promoters & Developers Pvt. Ltd. V State of UP and others], the Hon'ble Supreme Court, while dealing with the provision of Sec. 43(5), held that the promoter, while filing an appeal as against the order passed by the Original Authority, should deposit the entire amount awarded by the Original Authority as a condition precedent for entertaining the appeal. The relevant paragraphs of the Judgment passed by the Hon'ble Supreme Court in the said Judgment reads as follows:-